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The Kraft Heinz Company Add to portfolio

NAS:KHC, Jul 18, 11:49 UTC

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Wednesday, July 10


News

Why Kraft Heinz Stock Gained 12% Last Month

KHC

It's been a rough year for Kraft Heinz (NASDAQ: KHC) as the product of a blockbuster merger between Warren Buffett's Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) has gone sour, and investors have been forced to endure a dividend cut and an SEC investigation into its accounting practices. Nonetheless, investors got some good news last month as the stock finished June up 12%, according to data from S&P Global Market Intelligence, as the food maker completed an internal investigation and released its delayed 10-K annual report. Later in the month, Warren Buffett acknowledged he overpaid for his stake in the company, and Guggenheim analyst Laurent Grandet said Kraft Heinz "faces a monumental challenge as a stand-alone company" and questioned whether the company had enough cash to mount a turnaround. Through July 9, the stock has traded flat for the month. While some investors may see a turnaround opportunity here with the stock down 50% from its 52-week high and with a dividend yield of 5%, I wouldn't expect a quick recovery given the long list of problems the company faces as well as the secular headwinds from changing consumer tastes.

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Saturday, July 06


News

Where Will Kraft Heinz Be in 5 Years?

KHC

The packaged foods company, which was created from the merger of Kraft and Heinz, struggled with sluggish sales and contracting margins as shoppers gravitated toward healthier products and cheaper private label brands. It took a $15.4 billion writedown on its Kraft and Oscar Meyer brands, disclosed an SEC probe into its accounting practices, and slashed its dividend. Even Warren Buffett, who oversaw Kraft and Heinz's merger, subsequently admitted that Berkshire Hathaway "overpaid" for its 27% stake in the company. After Kraft merged with Heinz, the new company's management mostly focused on cutting costs instead of investing in new products, acquisitions, or ad campaigns. As a result its organic sales flatlined. This indicates that Patricio will likely ramp up Kraft Heinz's marketing efforts, seeking to pitch some of its aging products as premium brands in order to boost its gross margins again, and eventually acquire higher-growth brands while divesting lower-growth ones.

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Wednesday, July 03


News

Healthy.io Names Daniel Kraft, MD to Its Board; Adds U.S. Commercial Lead

KHC

TEL AVIV, Israel, July 3, 2019 /PRNewswire/ -- Today, Healthy.io — the global leader in turning the smartphone camera into a clinical-grade medical device — announced two additions to its leadership team: Daniel Kraft, M.D. "Stephen brings unrivaled experience in the medical device and health payer fields, making him the perfect person to bring our suite of solutions to the U.S. market," said Yonatan Adiri, CEO of Healthy.io. "Daniel Kraft is that rare combination of physician, entrepreneur, and innovator. As part of our board, he will work with the team as we build digital health solutions that stand up to the highest clinical quality measures and patient health outcomes." "As the U.S. health care system continues to shift toward value-based and outcomes-based payment, Healthy.io's solutions can play a vital role in improving screening for and early diagnosis of high-cost, widespread conditions to get patients the care they need, and, ultimately, lower costs and improve patient health in the long-term," said Clark.

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Friday, June 28


News

Maybe Warren Buffett and 3G Capital Should Have Tension Over Kraft Heinz

KHC BRK.B

Maybe Warren Buffett and 3G Capital Should Have Tension Over Kraft Heinz. Motley Fool Staff, The Motley FoolMotley FoolJune 28, 2019, 3:19 PM UTC. When Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) and private equity firm 3G Capital teamed up to orchestrate the acquisition of Kraft by Heinz (NASDAQ: KHC), it was a big deal that has apparently been a big miss. Buffett now admits that he significantly overpaid for Kraft, and the market cap of the joint company is now less than half what it was a year ago. So the rumors that there was friction between the partners are at the very least understandable. I don't know your reaction, but my reaction was, first of all, given what's happened, given the way Kraft Heinz has performed, particularly over the last two years, the writedowns that have happened for Berkshire Hathaway, the fact that Buffett has had to come out and say, "Oh, yeah, we paid too much for this," I think any reasonable person would expect there to be some level of tension.

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Thursday, June 27


News

Could Warren Buffett be wrong? Kraft Heinz is Exhibit A for iconic Big Food brands at risk of losing global relevance

KHC

Kraft Heinz is Exhibit A for iconic Big Food brands at risk of losing global relevance. The rules of the game used to be pretty simple for large food companies: Make massive quantities of tasty and inexpensive (if not particularly nutritious) food products, create memorable brands around them, and use their market clout to get them within arms' reach of the everyday consumer. For my mother's generation the germ-free, safe and convenient access to packaged and processed food was a boon. Replacing a CEO is nothing out of the ordinary in the food sector: The flurry of acquisitions aside, packaged-goods food CEOs are a breed at risk. Some 15 of the largest have been shown the door since 2016. But what happened at Kraft does reveal some specific mistakes made by the company, rather than spell the end of Big Food companies. Worse, power players like Walmart and Costco can credibly threaten to drop Kraft Heinz brands if they aren't happy with the prices offered them, squeezing margins. And that is not even to mention Amazon, which now owns Whole Foods (when Buffett got out of what had been a big, longtime stake in Walmart a few years ago, he cited Amazon).

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Tuesday, June 25


News

Warren Buffett denies tensions with Kraft Heinz partner despite company troubles: report

KHC

Warren Buffett has denied any tensions with Brazilian equity firm 3G Capital, despite troubles with Kraft Heinz. Buffett also reportedly told the outlet that Lemann attended Berkshire’s meeting in May and that he plans on seeing Lemann in July at a conference and in August for Lemann’s 80th birthday. Losses from Kraft Heinz battered Berkshire’s fourth-quarter earnings at the end of February, during which the conglomerate posted a rare $3.02 billion write-down that Buffett said was “almost entirely attributable” to its significant stake in Kraft Heinz. However, Kraft Heinz shares opened higher earlier this month after the company disclosed that it completed an internal investigation into its procurement operations. Despite troubles with Kraft Heinz, Buffett told CNBC he supports Kraft Heinz’s incoming CEO, Miguel Patricio, a longtime executive at Anheuser-Busch InBev, who will replace outgoing CEO Bernardo Hees in July.

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Monday, June 24


News

Kraft Heinz launches spoonable smoothie brand Fruitlove

KHC

Kraft Heinz is launching a new single-serving spoonable smoothie brand called Fruitlove,which mixes yogurt with three fruits and vegetables in every cup. The product is available nationwide for $1.99 each and comes in four flavors: Strawberry Banana Twirl, Harvest Berry Blend, Mango Medley, Pineapple Coconut Bliss and Blueberry Dream. The spoonable smoothie brand is now available at grocery stores across the country and certain Amazon Fresh locations, according to the release. According to market research firm Technavio, the global smoothie market will grow at a CAGR of nearly 9% until 2021. As a growing segment, this could be an attractive choice for Kraft Heinz, which just weathered a tumultuous quarter where the company wrote down the value of its Kraft and Oscar Mayer brands by $15.4 billion, resulting in a $12.6 billion net loss and slashed its dividends more than 36%.

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News

Kraft Heinz is running out of cash: top analyst

KHC

Saving macaroni and cheese maker Kraft Heinz (KHC) may be one of the toughest gigs in Corporate America today (well that and trying to run what’s left of Sears). But come July 1, veteran marketer Miguel Patricio will officially take his crack as CEO of Kraft Heinz. The iconic company has been embarrassed by two years of terrible sales growth, a $15 billion write-down to the Kraft and Oscar Meyer trademarks, a depleted corporate culture, an awful stock price and a subpoena from the U.S. Securities and Exchange Commission related to an investigation of its accounting practices. As we said, this won’t be an easy C-suite gig. “In our view, Patricio faces a monumental challenge to put Kraft Heinz on a path to success as a standalone company,” contends Guggenheim Securities analyst Laurent Grandet. “The company finds itself in a precarious situation where (1) the balance sheet is constrained by a high debt burden, (2) the brands are in dire need of heavy investment, (3) the organization lacks enthusiasm and the appropriate level of talent, and (4) the cash flow isn’t sufficient to fund all those urgencies concurrently,” writes Grandet. What the new Kraft Heinz CEO has to do.

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Thursday, June 20


News

S&P downgrade takes Kraft Heinz one step away from junk

KHC

S&P Global cut the debt rating of Kraft Heinz on Thursday, putting the US packaged food conglomerate one step closer to losing its coveted investment grade status as it battles to reverse flagging sales growth and draw a line under problems with its accounting practices. The credit rating agency downgraded the maker of Heinz ketchup and Philadelphia cream cheese to BBB- from BBB. While the outlook was revised from negative to stable, suggesting no further downgrades are imminent, the move still leaves Heinz’s credit rating just one notch above junk status.

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